A recent economic impact study done by Emsi based on the 2018-2019 fiscal year data shows the value of Paris Junior College. It demonstrates how integral PJC is to the regional economy. PJC creates a significant positive impact on the business community and generates a return on investment to its major stakeholder groups – students, taxpayers, and society.
“PJC leadership understands the importance of the college to the area we serve and periodically have an economic impact survey completed to evaluate our continued value and payback to the area we serve,” said PJC President Dr. Pam Anglin.
The college plays a crucial role in helping students increase their employability and achieve their potential. The college draws students to the region, generating new dollars and providing students with the education and training they need for prosperous careers.
The college also supports a variety of industries, serves regional businesses, and benefits the society as a whole through the expanded economy and improved quality of life. State and local governments are benefiting from the increased tax revenues and public sector savings and the economic impacts PJC has on the business community and benefits generated for students, taxpayers, and society.
The study involved two parts, an economic analysis that measures how an institution affects the local economy and an investment analysis comparing costs and benefits to determine the return on investment.
The Paris Junior College service area included in the study is Delta, Hopkins, Hunt, Lamar, and Red River counties. The average earnings by educational level for those with an associate degree is $34,200.
In FY 2018-2019, PJC served 7,204 credit students and 1,040 non-credit students. There are 424 employees for a payroll of $16.1 million. Twenty-three percent of students come from outside the region, and all students bring tuition revenue totaling $7.1 million.
The college adds $123.6 million in total income to the region and represents 1.4 percent of the region’s GRP. There are 2,339 total jobs supported in the area by the college or 1 out of 52 jobs. The region has $9.1 billion entire gross regional product (GRP), and 121,810 jobs.
The student spending in FY2018-19 indicated expenditures of relocated and retained students added $10.4 million to the PJC Service Region economy.
The alumni impact (higher alumni earnings and increased business profit plus ripple effects) adds $93.6 million to the region or 1,613 jobs supported in the region.
From a student perspective, the investment analysis shows a $191.6 million benefit in higher future earnings, $31.2 million in cost of tuition, supplies and opportunity cost, a benefit-cost ratio of 6.1, and a 19.8 percent return.
Taxpayers have a $53.4 million benefit from future tax revenue and government savings from $12.1 million in cost, a benefit/cost ratio of 4.4, and a rate of return of 10.5 percent.
The society receives a benefit of $773.6 million in future earnings, tax revenue, and private savings, with all college and student costs totaling $52.2 million, for a benefit-cost ratio of 14.8.
The results of the study demonstrate that PJC creates value from multiple perspectives. The college benefits regional businesses by increasing consumer spending in the region and supplying a steady flow of qualified, trained workers to the workforce. PJC enriches the lives of students by raising their lifetime earnings and helping them achieve their potential. The college benefits state and local taxpayers through increased tax receipts and reduced demand for government-supported social services. Finally, PJC benefits society as a whole in Texas by creating a more prosperous economy and generating a variety of savings through students’ improved lifestyles.
Several sources based the data and assumptions used, including the FY 2018-19 academic and financial reports from PJC, industry and employment data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of Emsi’s Multi-Regional Social Accounting Matrix model, and a variety of studies and surveys relating education to social behavior. The study applies a conservative methodology and follows standard practice using only the most recognized economic impact and investment effectiveness indicators.